June 4 (Bloomberg) -- Banco Santander SA and its affiliates
can’t be sued under U.S. securities law for allegedly putting
investors’ money into Bernard Madoff’s brokerage because the
investments were made outside the U.S., a federal judge ruled.

The investors, who are seeking to mount a group lawsuit
against the Madrid-based bank and its Optimal Investment
Management Services SA, can continue to sue the parties for
common law fraud, negligent misrepresentation and aiding and
abetting fraud, U.S. District Judge Shira Scheindlin said today
in a court order filed Manhattan.

The investors in the Optimal Strategic U.S. Equity Fund
allege that the so-called feeder put all of its assets with
Madoff even though there were signs of a Ponzi scheme.

The case is In re: Optimal U.S. Litigation, 10-04095, U.S.
District Court, Southern District (Manhattan).